A commercial agency is a business that acts as a middleman between manufacturers or service providers and their customers. They represent the interests of the principal and promote their products or services to generate sales. Commercial agencies operate independently and specialise in specific industries. They earn commissions based on the sales they facilitate. Their role involves marketing, sales, and negotiation to connect businesses and customers effectively.
The business activities that fall under Commercial Agency are:
Activities auxiliary to financial service activities, except insurance and pension funding (6610.00): This refers to support services provided to the financial industry, excluding insurance and pension funding. This includes the provision of physical or electronic marketplaces for buying and selling stocks, stock options, bonds, or commodity contracts. These marketplaces facilitate financial transactions and investment activities. The classification of these activities under Commercial Agency recognizes the role of intermediary entities in the financial sector. Commercial agencies act as intermediaries or service providers, connecting buyers and sellers and offering specialised services related to financial transactions. They may include brokerage firms, investment advisory services, and financial consultants. By offering platforms, technologies, and expertise, commercial agencies contribute to the smooth functioning of financial markets.
- Third-party Approval: No third-party approvals are required for this business activity.
- Filing of Economic Substance Return: Business activity 4772.91 is exempt from this requirement.
- Anti-Money Laundering Compliance: Business activity 4772.91 needs to meet this requirement.
Other activities auxiliary to financial service activities (6619.00): This refers to a diverse range of support services within the financial industry that are not categorised elsewhere. This activity includes tasks like financial transaction processing, investment advisory services, mortgage advising and brokering, as well as trustee, fiduciary, and custody services on a fee or contract basis.
These activities fall under Commercial Agency due to their intermediary nature. Commercial agencies serve as facilitators, connecting clients with financial services and ensuring smooth transaction execution. They provide expertise, infrastructure, and technology to support financial transactions, offer investment advice, and assist with mortgage-related activities. Notably, this activity excludes insurance agent and broker activities, as well as fund management, which have separate classifications due to their unique characteristics and regulatory requirements.
- Third-party Approval (PRE): Before obtaining a license from Meydan Free Zone, it’s necessary to obtain third-party approval from the Securities and Commodities Authority.
- Filing of Economic Substance Return: Business activity 6619.00 needs to meet this requirement.
- Anti-Money Laundering Compliance: Business activity 6619.00 is exempt from this requirement.
Travel agency and tour operator activities (7910.00): This business activity involves the sale of travel, tour, transportation, and accommodation services to public and commercial clients. These agencies act as intermediaries, connecting customers with various travel options. They offer assistance in planning and organising trips, while tour operators design and assemble comprehensive travel packages. These activities fall under Commercial Agency as they facilitate transactions between customers and service providers, providing convenience and expertise in the travel industry.
- Third-party Approval (PRE): Before obtaining a license from Meydan Free Zone, it’s necessary to obtain third-party approval from the Dubai Economic Department and Tourism Authority (DCAA).
- Filing of Economic Substance Return: Business activity 7910.00 is exempt from this requirement.
- Anti-Money Laundering Compliance: Business activity 7910.00 needs to meet this requirement.
Travel agency activities (7911.00): This business activity involves agencies that specialise in selling travel, transportation, accommodation, and tour services to the general public and commercial clients. These agencies act as intermediaries, facilitating transactions between customers and service providers in the travel industry. By offering tailored packages, advice, and assistance in booking arrangements, travel agencies enhance the overall travel experience. These businesses operate as commercial entities, earning revenue through commissions or service fees.
- Third-party Approval (PRE): Before obtaining a license from Meydan Free Zone, it’s necessary to obtain third-party approval from the Dubai Economic Department and Tourism Authority (DCAA).
- Filing of Economic Substance Return: Business activity 7911.00 is exempt from this requirement.
- Anti-Money Laundering Compliance: Business activity 7911.00 is exempt from this requirement.
Tour operator activities (7912.00): This refers to the operations of businesses that arrange and organise tours, which are then sold through travel agencies or directly by the tour operators themselves. These tours typically encompass various elements such as transportation, accommodation, meals, and visits to museums, historical or cultural sites, as well as theatrical, musical, or sporting events. Tour operators play a crucial role in designing, coordinating, and executing travel itineraries, ensuring a seamless and enjoyable experience for travellers. Tour operators function as commercial entities that generate revenue by selling tour packages.
- Third-party Approval: No third-party approvals are required for this business activity.
- Filing of Economic Substance Return: Business activity 7912.00 is exempt from this requirement.
- Anti-Money Laundering Compliance: Business activity 7912.00 is exempt from this requirement.
Advertising (7310.00): This refers to the provision of a wide range of advertising services, either through in-house capabilities or subcontracting. It falls under Commercial Agency due to its involvement in promoting products and services to the general public and commercial clients.
Advertising activities encompass the creation and execution of advertising campaigns across various media channels such as newspapers, magazines, radio, television, the internet, and outdoor platforms like billboards and panels. This includes media representation, aerial advertising, distribution of advertising material, provision of advertising space, and the design of display structures. Additionally, advertising entails conducting marketing campaigns and offering other services to attract and retain customers. It involves promoting products, implementing point-of-sale marketing strategies, utilising direct mail advertising, and providing marketing consulting services.
However, certain activities are excluded from this activity, such as publishing advertising material, producing commercial messages for media, public relations, market research, graphic design, advertising photography, convention and trade show organising, as well as mailing activities.
- Third-party Approval: No third-party approvals are required for this business activity.
- Filing of Economic Substance Return: Business activity 7310.00 is exempt from this requirement.
- Anti-Money Laundering Compliance: Business activity 7310.00 is exempt from this requirement.
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